Which of the statements is incorrect?Group of answer choicesStockholders are liable only to the extent of their investment as represented by the shares subscribed by them.A corporation is created by law or by operation of law.A stockholder has the right to transfer his shares without prior consent of the other stockholders.A stockholder is liable personally for corporate debts to third persons.

Which of the following statements is NOT correct?Group of answer choicesIncorporated associations can sue and be sued under their own nameIncorporated associations have a restriction on the ability to carry on a business or a tradeIncorporated associations can enter into contractsThe committee members in an incorporated association are generally liable for the debt of the associations

All shareholders of a corporation have the right to share in the profits of the corporation.Group of answer choicesTrueFalse

A characteristic of the corporate form of ownership is limited liability which means thatMultiple Choiceowners are only liable for the amount they invest in the business.owners are liable in proportion to the total number of owners in the business.owners are only liable for debts that the corporation cannot cover.liability is limited to the decision makers of the corporation.liability for the corporation's debts decreases over time.

If you own stock in a corporation that goes bankrupt, you ______.Multiple choice question.are personally liable for the corporation's debt have the same liability as you would had you invested the same amount in a partnership or sole proprietorshiponly stand to lose what you paid to buy the stockhave unlimited liability

Corporations are important because of advantages created by the unique characteristics of the corporate structure of ownership. Which of the following makes buying shares in a corporation attractive to investors?Multiple ChoiceShareholders are agents of the corporation and not liable for the corporation's debts.Shareholders are not agents of the corporation nor are they liable for the corporation's debts.All of these choices are correct.Shareholders are agents of the corporation and ownership rights are transferable.Shareholders are not agents of the corporation and corporations are subject to stringent government regulation